Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

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Understanding Reverse Life Insurance

viatical settlement Most people associate life insurance policies with death benefits, but they can also serve as financial resources during the policyholder's lifetime. Ensuring medical or debt-related costs are handled is just one way these policies can provide a safety net during challenging times.



The ability to sell a life insurance policy is a rising trend that many are unaware of. Referred to as ‘reverse life insurance’ or ‘life settlements,’ this process essentially converts a policy into immediate cash value. For those needing a sudden influx of funds, this option could be both viable and lucrative.

What is Reverse Life Insurance? How Does it Work?

Can I sell my life insurance There’s a common misconception that ‘Reverse Life Insurance’ and ‘Life Settlements’ are the same, but they differ. Though related, Reverse Life Insurance and Life Settlements are not synonymous.

As a broad term, Reverse Life Insurance includes various methods of converting a policy into cash. By contrast, Life Settlements focus on selling the policy for an amount between its surrender value and death benefit.

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